The global investment banking firm – Jefferies Group – reportedly determined FTX creditors could
retrieve as much as 40% of their lost money.
According to Joseph Femenia, Global Head of Distressed Debt Trading at Jefferies, there is light at the
end of the tunnel for FTX creditors who could recover 20% to 40% of their assets.
Femenia estimated that FTX owes creditors between $10 billion and $13 billion. He outlined that
between 5% and 10% of that amount needs to be paid to attorneys and relevant administrators so they
can process the clients’ cases.
The executive recalled that victims of the multibillion-dollar Madoff Ponzi scheme recovered more than
$14 billion but had to pay more than $1.5 billion in administration fees.
According to court documents, the former crypto giant owes its top 50 creditors over $3 billion. Some of
the prominent names with exposure to the bankrupt platform are Temasek, Tiger Capital, BlackRock,
Thoma Bravo, Sequoia Capital, and more.
(Reporting by Shikha Singh, Editing by Laxmikant Khanvilkar)
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